The TiTTs (Kumbaya) trading system had 2 signals. In a Bullish market, there was a pullback which gave the Sell Short signal. After 4 candles, it had reversed upwards. This is a trade which would have resulted in a small loss.
Subsequent to that, it reversed upwards and gave the Buy Long signals. All the signals were aligned and this would have been a very profitable trade.
When trading in a volatile market, we need to focus on the market internals ie. the Tick and the ADD (Advancers – Decliners) charts. The rules are as follows (Bullish trade):
Check the location of the ATR-Trailing StopLoss line in relation to the close. Also check the 55 SMA line. If both are above the Close, then the index has a bearish bias. If both are below the Close, then the index is bullish.
Check the $Tick chart for the Bias. If the $Tick Average line is below zero, then the line colour is White. If the $Tick Average line is above zero, then it is Green.
Also if the $Tick bar is above the line then it is Green else if the $Tick bar is below the $Tick Average line, then is Red. For an UpTrend, the $Tick bar is above the $Tick Average line which is sloping upwards.
If the $Tick bar is below the $Tick Average line which is sloping downwards, then it is DownTrending.
For Bullish Entry, check the FOUR Square Cyan/Green dots are present.
Check that the 821 AIM High! vertical line and Cyan square dot is present.
Check that the SR-TF2 three arrows are pointing Upward and the Cyan Square Cyan dot is present.
We Buy Long when all 6 dots are green/Cyan and Sell Short when all 6 dots are White.
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